Pixel 9 Pro production costs drop 11 percent compared to predecessor

A recent report from Nikkei shows the cost of making Google’s Pixel 9 Pro, which costs about $406 to put together. That’s roughly 11 percent cheaper than the Pixel 8 Pro, although it’s essential to remember that these two models aren’t the exact same size, which affects the comparison a bit.

Breaking down the costs, the Pixel 9 Pro’s Tensor G4 chip is the priciest component, sitting at $80. Then there’s the M14 display from Samsung, which adds another $75. As for the cameras, those parts make up $61 of the total cost. The lower overall cost is partly thanks to the Pixel 9 Pro being smaller than the Pixel 8 Pro, so it has a more compact screen and battery.

Conversely, Apple’s iPhone 16 Pro is pricier, with manufacturing costs hitting $568—a 6 percent jump from the previous model. The A18 Pro chip costs $135, while the M14 display and camera components cost $110 and $91, respectively.

Even though it costs a lot more to make, the iPhone 16 Pro and Pixel 9 Pro both sell for the same retail price of $999. This difference in production costs points to different profit margins between the two brands. However, it’s worth noting that these numbers don’t factor in other considerable costs like R&D, marketing, and distribution.

With the Pixel 9 Pro’s reduced manufacturing costs, it seems Google might be focusing on making production more efficient to keep its pricing competitive in the premium market.